Quick take:
- It also advances the crypto exchange company’s mission to build a unified, high-performance trading environment.
- A Designated Contract Market (DCM) authorizes Kraken to design and create markets for exchange-listed derivatives in the U.S.
- The acquisition follows Kraken’s purchase of U.S.-regulated futures trading platform NinjaTrader earlier this year.
Kraken has announced the acquisition of the CFTC-licensed Designated Contract Market, Small Exchange for $100M. The move is part of Kraken’s plans to launch a fully U.S.-native derivatives product suite.
According to the press release seen by NFTgators, a Designated Contract Market (DCM) authorizes Kraken to design and create markets for exchange-listed derivatives in the U.S.
The acquisition aligns with the crypto exchange platform’s mission of building a world-leading unified derivatives trading platform, following its $1.5 billion acquisition of U.S. U.S.-regulated futures trading platform, NinjaTrader, earlier in the year.
Commenting on the announcement, Arjun Sethi, co-CEO of Kraken, said the acquisition creates “the foundation for a new generation of United States derivatives markets. It is designed for scale, transparency, and efficiency.”
“This step connects spot, futures, and margin products inside a single regulated liquidity system, reducing fragmentation, lowering funding latency, and bringing onshore the kind of access and performance that has mostly existed offshore. Under CFTC oversight, Kraken can now integrate clearing, risk, and matching into one environment that meets the same standards as the largest exchanges in the world,” said Sethi.
The company already operates regulated derivatives venues in the United Kingdom, the European Union, and the United States, with the system featuring six fiat currencies and more than 450 cryptocurrencies, Sethi added.
Last month, Kraken raised $500 million at $15 billion valuation in a round backed by CEO Arjun Sethi, his venture firm Tribe Capital, and other investment managers and venture capitalists. The company plans to go public via an IPO in 2026.
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